FAC Explorer

Audit 46537

FY End
2022-12-31
Total Expended
$6.26M
Findings
2
Programs
2
Organization: Lima Memorial Health System (OH)
Year: 2022 Accepted: 2023-09-19
Auditor: Plante & Moran PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
38925 2022-002 Significant Deficiency - L
615367 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.498 Covid-19 - Provider Relief Fund $6.24M Yes 1
93.461 Covid-19 - Testing for the Uninsured $23,344 - 0

Contacts

Name Title Type
EAKDVASD5HJ7 Eric Pohjala Auditee
4192265163 Dawn Stark Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Lima Memorial Health System and its subsidiaries (the Health System) under programs of the federal government for the year ended December 31, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Health System, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Health System. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement except for expenditures related to Assistance Listing Number 93.498, Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution. PRF does not apply the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, but rather applies the U.S. Department of Health and Human Services guidance and frequently asked questions, as outlined in the Compliance Supplement. For the PRF program, HHS has indicated that the amounts on the Schedule should be reported in correspondence with reporting requirements of the HHS PRF Reporting Portal. Payments from HHS for PRF are assigned to one of five payment received periods based upon the date each PRF payment received. Each period has a specified period of availability and timing of reporting requirements. The pass through entity identifying numbers are presented where available.The Health System has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-002
Assistance Listing Number, Federal Agency, and Program Name - 93.498, U.S. Department of Health and Human Services, COVID-19 - Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Federal Award Identification Number and Year - N/A, 2022 Pass through Entity - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - The U.S. Department of Health and Human Services (HHS) requires the nonfederal entity to report lost revenue and expenses incurred in order to support that funding received has been used for allowable activities. HHS has provided specific guidance in the October 27, 2022 Post Payment Notice on how to complete the required reporting of lost revenue and qualifying expenses in the reporting portal. Condition - The Health System's reporting submission for Lima Memorial Professional Corporation did not follow the HHS' guidelines related to the reporting of lost revenue for the Period 4 reporting period. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Quarterly revenue amounts reported in the Period 4 portal submission did not follow the guidance prescribed by HHS. The HHS' guidance for portal submission requires each quarter's budget and actual revenue amounts to be entered by payor. The Health System hard entered the total remaining calculated lost revenue amount rather than entering the quarterly budgeted and actual amounts that would have resulted in the portal calculating the lost revenue. Cause and Effect - Appropriate review of the Lima Memorial Professional Corporation reporting submission was not completed to ensure the report followed the required guidelines. As a result, the revenue for the quarters were improperly stated within the Lima Memorial Professional Corporation Period 4 reporting submission by overstating lost revenue. There was no impact on the SEFA, as the lost revenue calculation would properly support the Period 3 and Period 4 PRF funding. Recommendation - We recommend the Health System implement controls, including levels of review, to ensure reports are completed in accordance with the HHS' guidelines. Views of Responsible Officials and Corrective Action Plan - The CFO will review all portal submissions to ensure the underlying lost revenue calculation and data input into the portal are for the correct entity. In addition, the CFO?s review will verify the portal submission data entry agrees to the underlying quarterly lost revenue calculation.
Finding 2022-002
Assistance Listing Number, Federal Agency, and Program Name - 93.498, U.S. Department of Health and Human Services, COVID-19 - Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Federal Award Identification Number and Year - N/A, 2022 Pass through Entity - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - The U.S. Department of Health and Human Services (HHS) requires the nonfederal entity to report lost revenue and expenses incurred in order to support that funding received has been used for allowable activities. HHS has provided specific guidance in the October 27, 2022 Post Payment Notice on how to complete the required reporting of lost revenue and qualifying expenses in the reporting portal. Condition - The Health System's reporting submission for Lima Memorial Professional Corporation did not follow the HHS' guidelines related to the reporting of lost revenue for the Period 4 reporting period. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Quarterly revenue amounts reported in the Period 4 portal submission did not follow the guidance prescribed by HHS. The HHS' guidance for portal submission requires each quarter's budget and actual revenue amounts to be entered by payor. The Health System hard entered the total remaining calculated lost revenue amount rather than entering the quarterly budgeted and actual amounts that would have resulted in the portal calculating the lost revenue. Cause and Effect - Appropriate review of the Lima Memorial Professional Corporation reporting submission was not completed to ensure the report followed the required guidelines. As a result, the revenue for the quarters were improperly stated within the Lima Memorial Professional Corporation Period 4 reporting submission by overstating lost revenue. There was no impact on the SEFA, as the lost revenue calculation would properly support the Period 3 and Period 4 PRF funding. Recommendation - We recommend the Health System implement controls, including levels of review, to ensure reports are completed in accordance with the HHS' guidelines. Views of Responsible Officials and Corrective Action Plan - The CFO will review all portal submissions to ensure the underlying lost revenue calculation and data input into the portal are for the correct entity. In addition, the CFO?s review will verify the portal submission data entry agrees to the underlying quarterly lost revenue calculation.